James Wynn, a millionaire crypto trader known for making bold, high-leverage bets, has been liquidated of approximately $25 million in Bitcoin after wagering that the asset’s price would climb. According to blockchain analytics firm Lookonchain, Wynn lost 240 BTC—worth roughly $104,817 per coin—despite partially closing positions to avoid a deeper liquidation. At the time of the loss, Wynn was holding a 40x long position on Bitcoin via the trading platform Hyperliquid.
James Wynn(@JamesWynnReal) just got liquidated for 240 $BTC($25.16M).
— Lookonchain (@lookonchain) June 4, 2025
He also manually closed part of his position to lower the liquidation price.
He still holds 770 $BTC($80.5M), with a liquidation price of $104,035.https://t.co/FX6sISWuDP pic.twitter.com/ZrroIyP9LZ
Despite the setback, Wynn still retains 770 BTC valued at around $80.5 million, with a liquidation threshold of $104,035. Data from Hypurrscan reveals that the trader is currently sitting on an unrealized loss of nearly $1 million.
Accusations of Market Manipulation Follow Loss
Following the massive liquidation, Wynn took to social media platform X to allege that the market had been manipulated against him. He went so far as to request public donations to fund what he calls a crusade to expose manipulative trading practices within the crypto space.
MARKET MANIPULATION.
— James Wynn (@JamesWynnReal) June 4, 2025
Wynn first rose to fame by placing massive leveraged bets on Bitcoin using Hyperliquid, where traders’ positions are publicly viewable. On May 24, he placed a staggering $1.25 billion long position with 40x leverage, just a day after losing $29 million. However, his aggressive trading strategy has led to steep losses—$100 million over a single week, according to Lookonchain and Arkham Intelligence.
CZ Proposes Dark Pool DEX to Curb Liquidation Risk
The fallout from Wynn’s liquidation has sparked industry-wide discussions on transparency and market fairness. Binance co-founder Changpeng “CZ” Zhao proposed developing a dark pool perpetual swap decentralized exchange (DEX) to counteract manipulation in highly visible trading environments. CZ noted that transparent DEXs can be vulnerable to front-running and slippage, particularly during liquidations.
Also Read: Tariff Uncertainty Under Trump Poses Major Risk to Bitcoin Surge, Analyst Warns
In traditional finance, dark pools offer anonymity and liquidity to institutional investors. While they mitigate slippage, critics argue they introduce new challenges, such as conflicts of interest due to reduced transparency.
As Wynn’s volatile trading journey continues to capture headlines, the broader crypto community is re-evaluating how leverage, transparency, and innovation intersect in an increasingly scrutinized market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
